• long running

Open Trader $5 Per Trade (under $2500) ASX CHESS Sponsored

1770

Saw this deal and remembered that I came across Open Trader which is cheaper if your trades are $2500 or less.

  • UP TO $2,500 - $5.00
  • $2,500 to $15,000 trade - $15.00
  • over $15,000 trade - 0.10% of value

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Comments

  • Any reviews on this vs commsec/selfwealth?

    • what do you need? If you dont like the platform just use it to execute the trade and use the platform you like for research etc…

      $5 is damn cheap if you trade in small amounts (which you really shouldn't do IMHO)

      • +26 votes

        People trading small amounts helps ASX liquidity and it's more productive than just sticking it in yet more sticks and bricks, so I don't know why you'd be discouraging it when someone finally makes it available at a decent price that makes it viable for small amounts.

        I mean it'd be great if we had US-style $0 brokerage and just a few cents in exchange fees, but this is Australia, so that ain't happening.

        • cloudy ultimately knows what he meant. But he may just have been suggesting that small trades are unadvisable because the fee then becomes a significant fraction of the trade. If you purchase $1001 of shares in CommSec you could be paying 2% on the way in and way out. So you need the stock price to increase 4% to make any capital gain.

          • @markathome: If the brokerage fee is low this impact becomes lower which is the purpose of this deal. $5 fee on $2500 trade = 0.2% which is lower than CommSec for trades below $10,000.
            i.e. Unless someone's doing >$10k trades on CommSec, otherwise he's essentially paying a higher fraction of fee than these $2.5k trades.

        • Cost measured as a percentage of capital is the most important figure, on that note small investors are at a major disadvantage.

          even at $5, the frictional cost of buying and selling shares means an average investor needs to perform at high level to outperform on a risk adjusted basis. (unless you use this just to buy and hold an ETF )

          Lets say you buy 3 shares(A, B and C) at $2500 each (trying to lower the % of friction as much as possible.

          A: goes up 10%
          B: stays the same
          C: goes down 10%

          you're P/L is

          A: $250
          B:0
          C:$250
          Total nil

          You're brokerage is:

          A:$5+$15
          B:$5+5
          C:$5+5
          Total: $40.

          So this investor needs to earn almost 6/10th of a percent just to tread water.

          That's no small bar to climb over, and thats with a discount broker like this. Imagine you're usual other brokers, it'll be ticking towards 1%.

          i'm just saying, from someone who knows how the industry of finance works, skimming small fractions off a large pool of money is how they make their money, and those percentiles i point out are hard to beat.

          That all assumes someone trades, if you buy and hold it's all pretty meaningless in the end, but my anecdotal experience is people who investing with these amounts churn thru their portfolio fairly quickly.

      • -1 vote

        If people trade with a gambling strategy see some comments in https://www.ozbargain.com.au/node/557024

        Not saying play safe is “better”, depends on what someone is prepared to lose when things head south.

      • Then there’s the idiots who don’t have the money so take out a loan to buy shares 100% claiming it’s bulletproof and then COVID happens.

    • Well, they're the CHESS participant that settles SelfWealth and Raiz trades, so there's that…

    • I noticed these discount providers don't provide live market data including price and depth of market (CommSec does provide live data). Trying to work out how big of an issue that is. Someone suggested you have a CommSec account for analysis and then use these providers to actually execute the trades.

      • +1 vote

        You may not realise it, but OpenTrader actually does provide Live Data - so if that is the only thing holding you to CommSec while you execute through OpenTrader you may as well make the full switch!

        • Is it the case there's a subscription required for that though? Albeit with the first two months free? From the website:

          Get 2 months pro platform for FREE, including streaming live data and ASX news valued at $198.

        • website: pay $9/month to continue live data

        • +1 vote

          Hi OpenTrader,

          I have opened account but the open account but the Open Account option is still available and it lets me apply everything again. So It's not sure if my account is opened or not as there is no communication without the initial email and website doesn't show of there is an account in progress etc

          You should disable the Open Account Link once the account is opened.

  • This is why I love OzB!

  • I guess they don't have quality mobile app. Great deal if you are not dependent on mobile app.

  • you know sooner or later, ASX trades will be free

  • Anyone have any aussie stock tips? Just curious about what's hot

  • Any idea which bank they will hold your money?

    • If you want to open a trading account with OpenTrader, you’ll need to open one of the following linked cash accounts: Macquarie Bank Cash Management Account, CBA Cash Accelerator Account, Bankwest Cash Management Account or DDH Graham Money Market Deposit Account.

      https://www.finder.com.au/openmarkets

    • I created an account this morning. They would only give me the option of a “Macquarie Cash Account”. From Macquarie’s website it seems like there’s no account keeping fees but not sure if they require a minimum balance.

      • From your current bank, you have to transfer money to MCA then to open trader.

        Takes few days.

        Stake used to be like this but they introduce other ways like using PoLi.

  • Wow, any reviews?

    Is this as easy as NAB Trader?

  • How do you open account for minor. Which option do you select for minor as beneficiary.

  • I'm curious to know how this compares to Selfwealth

    • SWF is $9.5 per trade regardless of amount, so if you are trading bigger, then SWF for sure. If you are trading small under $2500, this is worth a look

  • Is buying using this platform then transferring the shares to your preferred broker a strategy anyone here implementing? IE transferring to Commsec to save apron 15 per trade between 1k-2.5k

  • edited.

  • $5 seems pretty good. I do max $2000 a trade, don't wanna commit too much, so far only comm pocket lets me go in in small chunks of money without costing an arm and a leg.

    isn't OpenMarket same guys that deals with SW as well? I remember seeing that name somewhere in my account.

    • Yep basically SW uses Openmarkets to execute their trades (i.e. Selfwealth is a platform built on top of Openmarkets). If you trade less than $2k it's a no brainer imo.

  • Can you use this platform (or any cheap one for that matter) to buy, then shift your shares into say commsec or nab later on, or would that cost you money?

    • Yes, you can. Execute trading (buy/sell) in Opentrader and and manage it on your other trading platform after transferring them.

      The cost to transferring to CommSec or nabtrade will depend on the CommSec/nabtrade. Transfer to commsec/nabtrade request is executed from nabtrade/CommSec side.

  • So how the broker makes money?

  • Do you need to open a new bank account to use this? Are there any account keeping fees?

    • +1 vote

      Through the application process you will be able to open your new linked Macquarie Cash Management Account - no monthly account keeping fees there!

  • I think I would prefer to stick to SelfWealth and paying $9.50 for any size of trade, while also having my fingers crossed that whenever I do go to trade, someone has picked up my referral code and given me another 5 free trades. By the way my referral code is…

    • You can still use this to buy and transfer to SW provided you trade in less than $2500.

  • Is there an app for this platform?

  • I have no experiance with trading, is this a good place and price to start learning with small trades ?

  • So if you spend $2,499 buying some shares and then the share price goes up then you will pay $15 brokerage to sell them. The cost advantage disappears.